Overseas home buying is becoming more and more common nowadays. Today I will introduce to you the process of buying a house in Australia and some common sense about buying a house.

House purchase process

1. Select the room type and room number you like, pay a deposit ranging from 2,000 to 5,000 Australian dollars, and apply to the developer for reservation;

2. After receiving the deposit, the developer provides the purchaser’s lawyer with a purchase contract;

3. The customer signs the contract based on the lawyer’s explanation and pays 10% of the house price within 5 working days;

4. If you want a loan, the customer needs to prepare loan materials. Overseas people can basically get a loan of 70% of the property’s appraised value;

5. After the bank lends, the customer pays the balance, and the lawyer We will handle the final delivery of the property with the developer based on the contract and payment.

When to enter the loan process

The time required for a loan is generally six to eight weeks, including the time required for evaluation and the time required for contract review. Therefore, it is strongly recommended that if you are planning to buy a house, you should first contact the lending institution and ask them to do a "pre-screening" for you based on your credit situation and tell you how much money you can borrow and how long it will take to lend you. This can help you avoid the loan. the dangers described above. And most lending institutions have their own cooperative real estate agents, from whom you may get a better price for the same piece of Australian property.

If you are buying an existing house, you should start preparing loan application materials and applying for a loan from the bank when you pay 10% of the house payment; Start preparing loan materials around the month.

Documents required for Australian real estate loans:

Depending on different lending institutions and different financial products, the required materials vary. For overseas people, the procedures are actually very simple. , mainly provide the following materials: passport, driver's license, bank card and proof of credit card income in the last 6 months' statements.

The difference between Australian banks and non-bank financial lending institutions

In China, housing loans are generally issued by banks. The Australian financial market is very different. In addition to banks, Australia also has many other financial organizations, namely non-bank lenders, with the authority to grant loans. The source of funds for these institutions is not banks or savings, but funds raised through funds, trusts and other means, such as pensions.

Chinese customers often prefer to choose banks, while a large number of Australian natives are very resistant to banks. For lenders, more attention should be paid to the product rather than the institution. The key is which financial product is more suitable for your needs, not which institution is more famous. And compared with indicators such as reputation, the best way to measure the stability of a financial organization is to check the credit rating of the financial organization, which is more reliable. The credit ratings of many non-bank financial organizations are not low, or even higher than bank.

The initial cost of the loan

Mainly includes attorney fees, evaluation fees, and application fees. The general practice of banks is to package the three fees of lawyer, evaluation and application into one application fee. Some financial institutions will also waive application fees, but lawyer and appraisal fees will still be charged. Even if there is a difference, it is not very big. Lawyer fees are fees that the lender needs to pay when you submit the contract to your lawyer for review.

Australian real estate loan interest rates

Home loan products can generally be divided into variable rate (variable rate) and fixed rate (fixed rate). Fixed interest rates are generally higher than variable interest rates based on rising trends. If the variable interest rate is 5.99, the fixed interest rate will be higher than the variable interest rate. If you choose a fixed interest rate, you are buying insurance for your future interest rates. The lender may charge you a little more in return for your loss of financial freedom.

Generally speaking, if you are more worried about interest rates rising in the future, you are more likely to choose a fixed interest rate, but in fact you are not entering a safe.

You need to pay attention to two points about the fixed interest rate. First, the fixed interest rate is not fixed throughout the life of your loan. Generally, the fixed interest rate given now can only last for a maximum of 5 years. In other words, you can only maintain it for one year. Your interest rate is fixed for one to five years. When this period is over, you need to negotiate a new interest rate with your lender based on the current interest rate.

In addition, the fixed interest rate is not necessarily "fixed". Before settlement, your fixed interest rate can be changed. This change is determined by your lender, who is often based on constant updates. Use financial information to adjust your fixed interest rate. If you apply for a fixed interest rate loan and hope that you can still enjoy the fixed interest rate you like after settlement, you often need to pay a "lock-in fee."

So it is not recommended that customers take out fixed-rate loans, because first of all, the interest rate is often a bit higher, and secondly, the variable interest rates of all financial institutions are closely monitored by the Federal Reserve Bank (reserve bank). Changes in interest rates represent the government's influence on financial markets. Therefore, another interesting phenomenon has emerged. Some customers will ask, why do fixed interest rates always change, but variable interest rates always remain unchanged? In fact, the answer is very simple, because variable interest rates keep an eye on the Federal Reserve. Too frequent changes are not conducive to the national economy and consumer confidence, so when the Federal Reserve changes interest rates, it always needs to be considered and demonstrated in detail by multiple parties. Changes in fixed interest rates can be attributed to the rapidly changing winds in the financial market. In order to protect financial institutions, It is reasonable to make corresponding adjustments according to your own interests.

List of expenses for buying a property in Australia

In the process of buying a house in Australia, taxes, miscellaneous fees, stamp duty and moving fees will greatly increase the cost of moving into a new house. Many first-time home buyers often overlook these costs when designing their purchase plans. Being aware of these fees will help you save money and avoid being caught off guard by these fees in the future.

The cost of buying a house includes: Lending institution fees Stamp duty Insurance premiums Lawyer fees Property fees Municipal fees Sewage management fees Miscellaneous fees

For buyers who want to buy a house in Australia, the above house purchase process And you must understand the common sense of buying a house.

(The above answer was published on 2015-12-04, please refer to the actual current relevant home purchase policies)

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